Shares in Royal Bank of Scotland Group (LON:RBS) have fallen deep into the red in today’s session, ahead of the bailed-out lender’s results tomorrow. The company will continue the banking reporting season, with StanChart (LON:STAN), Lloyds (LON:LLOY) and Barclays (LON:BARC) having all posted results this week, and HSBC (LON:HSBA) scheduled to update investors on its interim performance on Monday, August 6.
As of 14:29 BST, RBS’ share price had given up 2.12 percent to 248.80p. The stock is underperforming the broader UK market selloff, with the benchmark FTSE 100 index currently standing 1.07 percent lower at 7,570.75 points with investors digesting the Ban of England’s move to hike rates.
RBS to post results
RBS is scheduled to update investors on its interim performance tomorrow and Proactive Investors reports that analysts at UBS expect the bailed-out lender to report second-quarter adjusted pre-tax profit of £1.3 billion, down from last quarter’s £1.4 billion.
The bank’s results are also expected to include a $1.44-billion charge after RBS recently agreed a $4.9-billion preliminary settlement with the US Department of Justice over mis-sold mortgage-backed securities in the run-up to the financial crisis.
The results will come amid the lender’s ongoing transformation in the wake of the financial crisis, which has seen the group retreat from non-core markets and focus on its operations at home.
Proactive Investors also quoted Graham Spooner, Investment Research Analyst at The Share Centre, as commenting the RBS chief executive Ross McEwan’s “restructuring plans will shrink the group further through to 2020 and will shift its business towards retail and commercial banking”.
RBS’ update will also come after earlier this week, the Financial Conduct Authority said that it will take no action against the company in relation to its controversial Global Restructuring Group which allegedly forced small company clients out of business.